Abstract: Object recognition based estimation of planogram compliance provides an expected arrangement of products in shelves. Identifying whether a product is placed in an appropriate location of a shelf is a challenging task due to various real-time parameters associated with image capturing. In the present disclosure, an input image associated with shelf of a retail store is received and a product images are cropped. Further, a set of reference images stored in a database are scaled corresponding to the input image. Further, one or more composite matching scores are calculated based on normalized cross-correlation and shape based feature matching to obtain one or more probable product images associated with a location. Further, a Directed Acyclic Graph (DAG) is constructed based on the one or more composite scores and the one or more probable products. Finally, an optimal matching product image for a particular location is obtained from the DAG.